Virgin Australia gains ACCC nod for partnership with Qatar Airways

Qatar Airways has expressed interest in acquiring a 25% minority stake in Virgin Australia. However, this proposal is still under review by Australia's Foreign Investment Review Board and remains separate from the current wet lease agreement.

The ACCC's interim decision outlines several cooperative measures between Virgin Australia and Qatar Airways. These include joint efforts in capacity deployment, scheduling, network planning, sales strategies, pricing cooperation for codeshare services, and reciprocal benefits for loyalty program members.

The airlines aim to launch these new services by June 2025 to coincide with peak travel periods between Australia and Europe. They plan to include these flights in schedules for the IATA Northern Summer 2025 season by December 24, 2024.

Mick Keogh, ACCC Deputy Chair, stated: "We consider that granting interim authorization now will allow Qatar Airways and Virgin Australia the lead time to undertake the necessary planning discussions, marketing, selling and system alignment in preparation for Virgin Australia to commence flying the new services by June 2025."

The airlines have also pledged to explore opportunities for direct entry pathways for Virgin Australia's crew into Qatar Airways as part of their collaboration on long-haul international flying capabilities.

Until a final decision is made by February 2025, any tickets sold must indicate they are 'subject to regulatory approval.' The ACCC has emphasized that its interim decision does not guarantee final authorization but suggests potential approval for a five-year period requested by both airlines.